United States v. Biwabik Mining Co.

Citations

• 247 U.S. 116
• 38 S. Ct. 462
• 62 L. Ed. 1017
• 1918 U.S. LEXIS 1962

Syllabus

<p>In computing the excise, under the Corporation Tax Act of August 5, 1909, of a mining company operating under a lease terminable at its option in any year and which grants it the privilege of entering, and of exploring for, mining and removing ores, in return for a royalty of so much per ton removed, but which does not convey the ore in situ, that part of the value of the ore disposed of during the tax year which represents its value as ore in place when the law'took effect should not be deducted as depreciation of capital assets. Von Baumbach v. Sargent Land Co., 242 U. S. 503.</p> <p>The lease here involved is not to be construed as a conveyance of the ore in place, although the latter could be measured with substantial accuracy.</p>